Topics:
 Perfetti Van Melle at a glance
 Perfetti Van Melle treasury redesign project
 Lessons learned
 Conclusions
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Perfetti Van Melle Holding B.V., Treasury Department
Perfetti Van Melle at a glance
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Perfetti Van Melle Holding B.V., Treasury Department
Facts & Figures
 HQ in Lainate (Milano)
Italy. Finance / Treasury
HQ in Breda, The
Netherlands
 Turnover: EUR 2,5 bln
 Sales in 150+ countries
 31 production facilities
 Subs in 40 countries
worldwide
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Perfetti Van Melle Holding B.V., Treasury Department
Perfetti Van Melle treasury facts
Situation back in 2009:
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62 bank relations in 40 countries
380+ bank accounts
15+ electronic banking systems, partly central, partly decentral
Manual banking used widely
Central intranet based cash position reporting systems (weekly balances,
manual entry by subsidiaries)
 Treasury management system used by corporate treasury only
 Cash pools in NL in 9 currencies, subsidiaries participating with non-resident
accounts. Centralized execution of hedging and funding
 Treasury staff of 3 FTE (FO&BO)
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Perfetti Van Melle Holding B.V., Treasury Department
Treasury redesign goals (Q2 2010)
Primary goal: Cash visibility and control
 New system for payment management, liquidity management and treasury
management including full ERP connectivity
 Bank connectivity via SWIFT for statements:
 MT940 statements in FileAct
 97% of cash flows & 85% of bank accounts visible daily
 MT942 via FileAct on principal trading accounts (150 accounts)
 Bank connectivity for payments:
 XML payments (pain001) harmonization
 Local CM execution, central administration and policy making
 Bank rationalization (62>35)
 Secondary goals
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Perfetti Van Melle Holding B.V., Treasury Department
Treasury redesign business case
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Business case performed on high level
Business case findings: Business case not positive
Despite that, support from management
Sole reason: value of visibility and control.
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Perfetti Van Melle Holding B.V., Treasury Department
Achievements up to Q3 2011
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All new systems operational
45 bank relations in 37 countries
325 bank accounts
76% of bank accounts reported via SWIFT from 20 banks,
approx. 85% of all cash flows visible daily
 Treasury live on manual payments via SWIFT
 3 subsidiaries live on manual & bulk payments via SWIFT
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Perfetti Van Melle Holding B.V., Treasury Department
Lessons learned: SWIFT (1/2)
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Statement reporting via SWIFT serves the purpose of visibility very well
When it works, it works: little maintenance on the channel
Support from SWIFT is generally very good
Good reason for bank rationalization
Underestimated total cost of maintaining connectivity via SWIFT:
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Connection (Alliance Lite / service bureau fee)
SWIFT subscription fees
Messages (SWIFT), possible message surcharge Service bureau
Banks’ setup fee and messages
Corporate infrastructure setup and maintenance
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Perfetti Van Melle Holding B.V., Treasury Department
Lessons learned : SWIFT (2/2)
We have been struggling with technology issues:
 Making SWIFT alliance lite work and the subsequent migration to SWIFT service
Bureau (Broadridge)
 Technical infrastructure setup:
 Servers
 FTP connectivity
 Interfaces
 Functional IT:
 ERP integration (SAP integrated system of Hanse Orga selected as the tool
for Payment management, Liquidity mngt. and Treasury mngt.)
 Interfacing with dealing platform (FXall)
 Interfacing (temporarily) with intranet reporting system
 Payment format setup and testing
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Perfetti Van Melle Holding B.V., Treasury Department
Lessons learned: Banks&SWIFT (1/2)
Support and performance differs significantly between banks:
 Struggling with documentation
 Connectivity setup
 Message types supported
 Statements
 Payment instructions
 Direct debit
 Treasury confirmations
 Bank delivery times can be very long
 Due to heavy investments, not a bank independent solution
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Perfetti Van Melle Holding B.V., Treasury Department
Lessons learned : Banks&SWIFT (2/2)
Costs are not transparent up front. Completely off the scale pricing
proposals seen. Negotiation pressure heavier than anticipated.
 Setup fee
 Maintenance fees
 Message fees often overlooked
Logic of pricing often not visible
 Portfolio determines the price only partly
 Sophistication of proprietary solutions used as SWIFT pricing
argument (higher)
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Perfetti Van Melle Holding B.V., Treasury Department
Lessons learned: The company
 Impacts almost every business area: long list of stakeholders to maintain.
Notably:
 Audit (separation of duties and EDP audits)
 Procurement (vendor master data)
 Financial administration (key users)
 Issues sister companies (rightly so or just as excuse)
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Sense of loss of control / ownership
Complex local products not easily fit in standardized tools / formats
Legal discussions
Transfer pricing discussion
 Permanent “project” = permanent support
 Pilot subsidiaries necessary to show achievements to reluctant subs
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Perfetti Van Melle Holding B.V., Treasury Department
Lessons learned: In house technology
and functional design
Technology needs are vast. We have certainly overlooked areas.
 Sophisticated payment / treasury management system
 Servers, secure connections
 ERP connectivity
 Staff that can cover both Treasury and IT subjects (integrated
project team)
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Perfetti Van Melle Holding B.V., Treasury Department
Conclusions on SWIFT
 The statement reporting via SWIFT has proven very useful in
the visibility goals
 SWIFT is not a solution fit for all. Whether it works for your
company depends on the company’s structure and approach.
 SWIFT is not plug and play, not even SWIFT Alliance Lite
 Beware of marketing
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Perfetti Van Melle Holding B.V., Treasury Department
Conclusions on Banks
 Banks in NW Europe are highly cooperative
 Banks in NW Europe show extensive knowledge
 SWIFT setup with banks is not plug and play, many banks
struggle with their own systems
 Beware of marketing
 It is not bank-independent due to the investment, especially in
time.
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Perfetti Van Melle Holding B.V., Treasury Department
Conclusions on the Company
 Technological complexity has to be covered by Finance and IT
together, impossible to do this without integrated treasury and
IT project team.
 Visibility and control are the main benefits, not cost saving
from efficiency
 This is not a project for us. It has proven standard process.
 Underestimation of the complexity and impact.
 Endless list of stakeholders.
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Perfetti Van Melle Holding B.V., Treasury Department
Q&A
?
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Perfetti Van Melle Holding B.V., Treasury Department